Oil refiners’ GRMs may remain under pressure on higher capacity

Mumbai: Higher than anticipated addition of capacity in 2019 may keep gross refining margins (GRM) of crude oil refiners suppressed for a few more months, said analysts. Against an incremental demand of 0.8mbpd (million barrel per day) an estimated 2.6mbpd of refining capacity came online in 2019.

GRM is what a refiner makes from turning every barrel of crude to fuel.

“In the absence of global recovery, we anticipate that GRMs would remain suppressed for a few more months in lieu of incremental refining capacity addition,” said Motilal Oswal in a report today.